welcome to "street signs" where we have got a big selloff in stocks and gold, so today it is a special show with our "street signs" gps. all hour we're asking very simple questions like should you sell, should you hold, or should you buy more on weakness? you're asking it with gold and even the housing market. mandy, we'll also hit this interesting stock, is the fed the perfect indicator as to whether you should be buying stocks? >> that's an interesting question. in the meantime, rock and roll, guys, after a month of a stealth

rally. i hope you're strapped in for this new environmental development. the dow is now on pace for the biggest two-day drop so far this year. now at their lowest levels in over 1 and a half months. let's get straight to the trading floors. rick santelli in chicago, they're joining us in just a moment's time, but bob, yesterday you called it. you said the markets were likely to spin everything bernanke said negatively, well, they did and how. is this panic selling or is it justified? >> in some cases it is panic selling. look, if you look at what's going on in emerging markets, and i've been talking about that in bond funds the last couple days, it's definitely panic sell. u.s. investors are the biggest foreign investors in the world. you get money pulling out of these foreign countries, the bids evaporate, and eventually you get this panic selling. the eeu down 14%.

there you see the decline in just the last six weeks or so. this is falling through to other emerging market countries. for example, we have big declines in asian stocks today, phillipines, thailand also took a down side today. china has its own particular problems, though we keep noting they're trying to prick their own asset bubble with real estate there. you see what's going on, thailand, india, down, so there is a big effect china is having. when you see the health care names that are down just as much as everybody else, energy names, staples to the down side, you know it's a weak day overall here. i particularly want to note, and a lot of people have been asking about bond etfs. it's the second biggest question we're getting. tips are down and have been down rather noticeably for the last few weeks, and i would note that even though the oqd is to the down side, mandy, the yields are

really start to go bounce back up. for example, that corporate bond etf now yields to 45% considering what it was a few weeks ago. >> let's get to rick santelli. what are you seeing, rick? >> 239 a very key top from 2011 and 2012, but we're start to go move back above it. we're currently at 22 high yields. should the market close above 240, we could keep the momentum. but here's the key, mandy. like in the early '90s when george zoros and the bank of england were going at it, the in flexion point was when it was perceived there was more money to be made, challenging the bank of england and going along with them. many traders think we've reached that fulcrum, that pivotal point with the fed.

don't fight the fed, that used to be the mantra. many believe it might be more profitable to challenge the fed, and that's where you got to watch. >> rick, i don't want to steal the thunder of what's coming up here after the first break, but i dug through some old fmc reports, and i may be able to make a case historically that the fed is the perfect in verse indicator that when they think things are bad, you should buy, and when they think things are good, you might want to sell. >> yeah, i can't debate you on the fundamentals of things like their forecasts, but i think their actions in that regard are inversely correlated, so i would tend to agree with you. >> all right, rick santelli, thank you very much. in the meantime, let's find out what's happening with metals. metals have kind of been on a down trend all year, but boy, has the selling started to intensify now. >> the meltdown seems to be intensifying, mandy. you've got higher interest rates, you've got low inflation, you've got the fed tapering, ending its buying plan, all of it is negative for gold, and

today we saw gold close at the lows, the overnight lows of 1285.90 and continuing to move lower at this hour right now, off more than $90 per ounce. silver crateerring, both of them, down near three-year lows. the only thing higher than metals was the gold volatility index, spiking up to a two-month high. i heard of a lot of folks trading volatility. in the energy pack, we had a weak data coming out of china which certainly is not helping the situation. back to you. with stocks down in a big way today, we are asking this very simply, should you buy more on weakness, should you hold your nose and hold what you got, or as cramer says, should you sell, sell, sell? i didn't do it as well as he does. our friend kumar president, also have herb here as well.

jeremy, what is it on weakness, buy, hold or sell? >> well, i don't think anyone would be surprised if i said buy, because i'm holding to my targets that i established a year and a half ago, which was at the end of this year, the dow will be between 16 and 17,000, and i'm not going to stop my prediction or change it just because the fed says the economy is getting good enough that we can take it off of life support. and that's basically what qe was, was life support system for the economy. they say it's no longer needed, we're going to get it off. >> i spoke to you just back on april 9, sir, and you said you would not be surprised if we saw 18,000 for the dow. are you categorical saying no longer 18,000, going with 16 or 17? >> 18,000 was for the end of 2014, i believe. so i think, you know, when i'm saying 16 or 17,000 -- listen,

we could get to 18. obviously, there is going to be a range, but my basic prediction was 16 or 17,000. in january of 2012, i said we're going over 15 and 16 or 17 was my target. i still think we're going to get there. >> buy, sell or hold? >> mandy, i would take a different position. i think in the short term, there is more correction ahead. this is a market which has been stimulated by the fed, by liquidity. it is not backed by fundamentals, it is backed by stable, sound, economic growth nor by corporate earnings, both of which are pointing downward. and now that the fed has indicated that it made paper, the stock market is failing the heat, and we're seeing the big decline take place now. having said that, and this is a fed-induced market, and fed can induce it to go up, and it can

induce it to go down. clearly, if you see consumer confidence dropping in the coming months and the housing prices not rise as much as we have seen over the past year to two years, the fed may well change its mind. so i think the stock market is on the upturn coming at some point, but it is not today. it is after a few months when you see the stock market correction cause the fed to think differently. >> i want to jump in here because i do want to bring in herb. we had professor segal say one thing, sharee believes the opposite. makes for a good market, right? what do you believe? what we're also sad about is that the patient, the economy, seems now well enough to get off the medicine. why is that a negative? >> well, it's a negative if interest rates hit a certain level, whatever that level is, which i know schree and professor seagull know there are

rates adverse to the market, where people say i'm going into something else because it's less risky. >> what would that be? because even if we raise a little bit from now, we'll still see lower rates. >> schree's comments now are probably premature. i tend to agree with him on a lot of things, but we're talking about a small uptick in things right now. that's my opinion, schree. >> i'm expecting bond yields to go down again. i'm not big on bonds 240, 245. i am looking for further economic weakness. >> that would be positive for stocks, no? >> well, not if the decline is cost because of economic weakness, not if it is cost as a result of problems or uncertainty. >> but that would keep the fed in there for longer. wouldn't that be a positive according to the market psychology at the moment? >> the fed has said that if we had a question about inflation,

and if deflation threatens, all these commodity prices going down, deflation, he's not going to stop the medicine, he's going to continue qe. everything was dependent on moving toward the target, the unemployment rate going down and the economy improving. we can't say, hey, get better. we have someone looking over and saying, i have to see you get better before i absolutely stop. i think that's encouraging. >> that's why i think the fed is not going to taper any time soon despite the statement that came out yesterday. once it finds the economic news is negative, and it starts buying bonds again at the same pace that it has been doing before, it is once again going to push equity market up, and at that time is going to push the bond yield even further down, which is why i think the 245 yield on the ten-year is not sustainable. it has to be quite a bit lower. >> you know what the good news is here, guys?

we're just getting started. stick around, we're going for a break. >> before we do, i have to ask this question. what in the heck is going on on the west coast? all the big dudes believe bond yields will go down? something is going on on the west coast, and i propose a trip to find out. >> there is something in the west coast water. maybe it's the legalization of ch cheetos. up next on "street signs," should you do the opposite of what the fed says? history says you might want to. we're going to show you evidence to back up that claim. plus, herb joins us once again with his selloff survival guide. join us after the break. ♪

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[ roars ] ♪ [ roars ] ♪ [ male announcer ] universal studios summer of survival. ♪ we are currently at session lows right now, down about 260 points there on the dow. by the way, folks, get used to this because it's now been eight straight sessions. in the markets we've seen triple moves on the dow. some of those have been higher, but it seems to be the normal of recent weeks. >> ben bernanke's comments moving the market, and with respect to our central bank chief, should you ignore the feds when making your decisions? history says maybe. here's why i said that. i went through old fed statements and here's what i

found. back on december 16, 1974, herb's 40th birthday, it said recent statistics indicate that the recession is gathering moment um. declinz in output and employment have been both widespread and deep, skpun employment is rising rapidly. then there is this from 1982. the staff now expects the real cnp will decline at a 4% annual rate in the current quarter, following a drop at a 5.25% rate in the final quarter of 1981. we've got our panel here. here's the other point. three years ago, steve, we were at the darkest point before the dawn, so to speak. the fed was overtly negative, as they should have been, and if you listened to them and were

scared of stocks, you missed out on a basic doubling of s&p 500. i'm not saying you should ignore the fed, but that history says they might be a perfect inverse indicator. >> i think it depends which part of the fed you want to follow. if you follow the direction of interest rates, for example, that example three years ago, we tell you to get into the market right there because the notion of don't fight the fed is not really a bad one to follow, and i think that's what's happening today. in fact, the feds' forecast went up a bit on gdp, a little more agressive on the decline in unemployment, very aggressive in the decline in inflation, so that would suggest, hey, if i'm betting just on the economy, i would be buying stocks. but, in fact, all of that is leading the way to perhaps a somewhat tighter policy. i think the market is overdoing it in how much tighter they think the central bank is going to be. but if you lean the direction of where policy is going, then today's reaction would be sort of right in line with that. >> i'm sure you know the old joke being an economist, steve,

why did god create economists? to make the weather look good. how often have economists gotten the forecast wrong? >> the stock market turns four months before the bottom of a recession. so, yeah, the economy can be getting worse. the stock market looks beyond that. four months is the average time period. so pointing near the end saying, don't forget, they weren't forecasting the stock market, they were forecasting the economy. and the stock market is four to six months ahead of the economy. i wouldn't slam the fed. and don't forget, that was 40 years a steve. 1984 we had 15% inflation. the world is a little different than it was back then. >> brian, two things. one, i have a lot of sympathy for what you say in terms of the fed being a kcontraindicator. look at 2005 and 2006.

they led to the fed problems. >> that's just not true. wasn't the fed raising prices in '05 and '06? >> but then you had greenspan until he left in 2006, steve, looking for the free market to take care of itself. i'm looking at the overall regulations of policy. second is, if you go to jeremy's point, october 9, 2007, the stock market hit a peak. when a wrote a report in december of 2007 that we were on the verge of a recession, i had nobody supporting it. i thought the central bank should be cutting interest rates significantly, but the stock market seemed to be suggesting that the economy was going to do well. so i would be very hesitant to think that the stock market is a good indicator. >> in 2007, they began the rate cutting. now, they should have been more

agressive on that -- >> that's exactly right. >> -- but they did see weakness to begin that cycle in december of 2007. >> hold on, let me jump in here because i don't want to turn this completely into a historical discussion. the point i was trying to make with this data was this, and herb, you can address it. if you were supposed to buy when the fed was negative, the fed is now becoming more positive, so is that, then, a signal to sell? >> in theory, when rates hit a certain level, which gets to the question i would like to ask both professor seagull and schree, and that is, i know we are a long way from it, but what is that level of rate that would have you switch over to fixed income? to have you get out of stocks. >> professor seagull first. >> it would be much higher. fo .4 of a percent is still way

over the growth of economy. this is still a very unattractive rate on treasury securities here. >> of course, it is. but where is it historically? >> dividends are increasing 10 to 15% a year with yields that are now 2, 2.5%. i think that's a winning combination. >> schree? >> i would say in ten years it looks like a significant point to change right now. i look in the sharp term to have a deflation. that's what you're getting in terms of prices. so a 2.4% yield on the ten-year is an extremely attractive yield to go into. and so it doesn't become unattractive until you're well below 2%, so i would say the time to switch is today. >> can i just end this really quickly on a completely different topic, but it does tie into monetary policy. schree, i believe for the first time ever and now on national

tv, you have switched and you're now a buyer. >> i am now a buyer. i accept from 2011, i said don't buy gold before it goes to 1300. again, it was a lonely call. there was nobody going with it. but now that we have gone below 1300 today, i think it becomes a buy even though i see some deflation in the short term may push gold under the 100, $150. >> i agree with schree. i think he should buy gold. >> very magnanimous of you, steve. >> do we come to a conclusion on my thesis? either way, i thank you guys for being here. >> you didn't want a conclusion, you wanted a discussion. >> all we really needed was alice in the center square to complete the whole look. just ahead on "street signs," herb's survival guide through this market. plus, the housing market

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very quickly, just want to show you because losses are accelerating on the dow. currently down about 280 points right now. we are on the second straight day there for the dow. the s&p is also down 2% which equates to 32 points. brian? >> ebix software. a lot of markets in the news and maybe none morrell vathan that r individual stock. a stock has ended partnership with ebix probably because the u.s. attorney general's office is now sniffing around ebix. herb, i know you know the company well. what's going on? >> the question i have on this entire thing is, one, why would gold man have gone into this thing in the first place when tons of red flags have been raised suggesting a lot of things that perhaps the justice

department is now looking at. i put a call into goldman today. i have not heard back from them on this one. >> i believe gotham research also said shares will probably go remarkably lower than what they already are, correct? >> that is what they said, indeed. >> navastar is down 9%. this is one of the less popular names. i do just want to point out here that i've been talking with people in the trucking industry. navistar is under a lot of pressure, customers out there trying to underprice and snare them away. >> you're slamming carl ichan now, is what you're doing. >> i'm not slamming carl ichan. >> do we know he's in the stock? >> we don't know. >> by the way, uncle herb, we brought you along here for

another reason today, and this is a market survival guide. you've laid out these before, but now it really feels like this is something we all need. >> i have this on cnbc.com right now. if you believe that over the long term, as professor seagull was talking about, and i do stress long-term, stocks will continue to be your best bet. some of these tips, which i put out in 1995 with the help of a few market pros could still hold today. the most obvious thing is just not to panic. then there are variations on the next most obvious which is sell high and buy low. now, if the market crashes and you have cash reserves, this would follow that you would consider buying more. that gets to really a much more important question. how much and when? and keep in mind, i've been talking to market pros for decades, and one very important lesson i have walked away with is there is no one size fits all. but there are no shortages of opinions. one guy whose opinions i have valued over the decades is the

always rational robert stovall who is an overall market strategist. he could not join us today, but he told me how he would handle various market events. first he said pullback, when markets decline 5 to 10%. stovall said a drop in 7% would be a good time to nibble away at your cash reserves. then there's corrections, and that's when there's a 10 to 20% decline. then there's the bear markets, when markets are down 20 to 30%. stovall said he would contribute another 20%. then he would do a reallocation of cyclical names. i cannot stress this enough, and that is sticking with your own risk tolerance. so many people out there telling you what they think you should

do. you have to bring it on home to yourself. it's a tough call for a lot of people. there are some guidelines. >> use your head, not your heart. don't get emotional, don't do panic selling. people have been waiting for this. they've been wanting a correction because they missed out. >> one thing i think seagull or someone said, have cash reserves. we sit there and when the market falls, you go holy mackerel, and when the market falls you become paranoid. >> you would generally be buying when things look bad. >> absolutely. it's darkest before the dawn, as you said earlier. there you go. i understand shares of clearwire halt has been caught up in this whole dish network going for sprint, softbank going for sprint, dish network going for clearwire.

david will be reporting extensively on this. as soon as the news comes out, you will hear it here first because we are the worldwide leader in business news. >> by wait, the dow paid for its worst day in 2013. we have silver, copper, all the metals in different colors, shapes and sizes. they're all getting whacked today. >> we'll get back to it when "street signs" returns. don't go anywhere. farmers presents: 15 seconds of smart.

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so you can capture your receipts, and manage them online with jot, the latest app from ink. so you can spend less time doing paperwork. and more time doing paperwork. ink from chase. so you can. breaking news, the dow just touched down 300 points. we're down to 293.87. it is a big down day. in fact, combined with yesterday, looking at one of the

worst two-day periods in the mark in a lo market in a long, long time. >> brian, you just mentioned they were halted for news pending. these headlines just dropping. clearwire changes its previous recommendation against the dish offer for 440 per share. in fact, the offer for clearwire is saying in the best interest of affiliated stockholders, it clearly acknowledges individual presence if clearwire. >> we'll continue following that. thanks very much, josh. in the meantime, let's get right to the trading floors. bob, we're down nearly 300 points on the dow. what would start accelerating some of that selling? >> maybe. i think we've got a little mini perfect storm of three things happening. number one, of course, we have the fed. number two, we have the events in china, and i would not

downplay that. i think in certain sectors that's just as important as the fed. and finally we have a quadruple expectation. the s&p dropped again when it hit 1600. that's a big strike price. when it goes through 1600, that's the price you're going to get tomorrow, by the way. when we close tomorrow, that's the price you're going to get. once you drop below that, that's a key level for the s&p 500. below that, it's likely the market makers are going to have more to sell of t. so the options expiration and the expiration we're facing here will be important today. the other is, of course, what's going on with the dow. the dow is strong tremendously in the last two days. that's putting a lot of pressure on all these commodities, gold, copper, and of course that's hurting commodities, and i want to point out some of big declines we've seen in the

commodity stocks. bhp, all the big names here like potash, down 3%. i think the declines we see in china, the attempts to prick asset bubbles that are there as well are hurting our markets as well. that's a big factor in the weakness of some of the emerging markets. finally we have housing markets. they've been weak for a couple days now. these are unusual declinedeclin here in poulte and ryland. >> i want to quickly add to the news that josh gave you a clearwire, the reason they're up is because sprint raised their price to $5 a share. that's why the board of

clearwire is saying, hey, let's go with the clearwire deal. it represents about a $14 value for that company. >> rick santelli, we were just talking about what was happening with yields. we're significantly higher, aren't we, on the 10-year, 30-year? what's happening right now? >> stocks just made new lows in 148.08 and we're hovering just slightly above that. yields are five basis points off their highest levels of the day at 242. i think there are two issues we should pay attention to. bob hit the issue that everyone is talking about, and that's china. think of the commercial paper issues we had in '08. it is basically locked up a bit, and that is important. there are a lot of reasons we could talk about that at another time. >> just on that point, are we looking at a full-blown credit crisis in china, something that could have significant ripples outside our world in light of their vast holdings of usps?

>> i think when the central planners are trying to curtail bad lending and we're going through this met mamorphosis as well, i think it's a healthy thing, not a dangerous thing. and i think we're going through the sweats. when you go through withdrawals, you sweat. the market is going through a bit of a withdrawal. i think that's healthy. and the third thing? we're all thinking proactive. we're thinking, is this a tip to buy? we are going through a defensive posturing here. i don't know many people that are speculating outside the day traders in the pit and selling this to make money. this is about defense. look at the numbers for the net change positive on stocks. think the end of the quarter and half year is coming. it's about defense. i think it could have been much worse, personally. think about the t.a.r.p. vote and the volatility we had then. this is something we have to go through sooner or later, and i really hope indirectly through all the different venues of

communication that the fed goes along with this as part of their plan, because i think challenging this market response would be the wrong maneuver. >> rick santelli, well said as always, buddy. thank you very much. let's bring in ken volpert ativa at vanguard, herb still here as well. >> i think the market was really pricing in the tapering of 2014, and i think the bond market is responding to pull it forward. i would not be a seller here. let me put it that way. i think investors definitely should not panic. in here you've got jobs are definitely growing some, but we've got actually the fed has a dual mandate. they've gotten inflation as well, and inflation has actually been coming down. from about a year ago, it's come down about 50 base points, from 2.3 to 1.7 today on core

inflation, and headline inflation has also dropped from 2.3 to 1.4. so inflation is going to the wrong direction, and break-evens are even indicating lower inflation than a few months ago, down by about .8% in the five-year break-even inflation. so i think the fed need to be concerned about that as well, and that's something that may be reflected at some point in the next number of meetings in some of their comments. >> you know, ken, when we talk about bonds, we're always talking about the individual bonds, but i still come back to bond funds. what do you tell somebody who is sitting on a bond fund right now, they have so many different types of bond funds with different durations. it's like, what do i do now? so many people were asking that question. what's your response? >> well, the thing is with a bond fund is that you actually have a stable risk profile, and that's what investors really want when they buy a bond

exposure within a balanced portfolio. they want a stable risk profile, they don't want one that's getting less and less risky. >> but your principal is at risk. >> sure, your principal is at risk in a regular bond, too, if you're buying original bonds. >> but there's an end point. >> if you own one bond, that's true. but if you own a series of bonds, like a ladder portfolio, you don't have an end point because you're constantly rolling into another ten-year bond or a longer bond. so when you own a ladder portfolio, you really do own a bond portfolio, it just happens to be naively laddered instead of managed against the market as a whole. >> what are we more likely to see first, 2% again or 3% on the ten-year? >> i think we'll see 3%, but my hope is we're going to see 3% over a very long period of time, not anything that's going to happen really quickliment i think the market is appropriately adjusting to the reality that the fed is probably

going to start tapering sooner than expected. but that said, you know, we've gone from a period of where ten-year bonds, ten-year treasuries had a negative reel rate of 10% where now you have a reel rate that's positive, so you're actually earning more inflation over time as a bond investor, which is kind of a normal environment. still lower than expected or lower than average. it should be somewhere around 1 or 2%, but it's certainly a lot better than had existed as recently as two or three months ago. so investors say the worst is behind us for a while in terms of the bond funds. >> obviously, even ben bernanke is trying to avoid a sharp upward move in rates, yet this is something the market is fearing. what scenario would have to occur for us to see, for example, 3% very fast? >> well, i think the jobs numbers just continuing to be

very, very strong, skpand inflan starting to pick up. i don't see inflation starting to pick up. you see in the commodity prices today, huge drops in commodity prices. that's going to be reducing inflation even further. you need to see a lot more strength than even i think bernanke is expecting right now to get up to 3%. we've had a huge retracement, and we've got very positive real rates, and we've had a lot of uncertainty globally around growth. so it would really surprise me if we saw rates continue to climb from here. >> ken volpert, always a pleasure to have you on the show. thank you for joining us. >> you're very welcome. thank you. up next, trading the metals selloff. >> also, could housing be a safety play on a day like this? first we have bill griffeth. what's on tap for the closing bell? >> you're not going to miss this last hour, mandy. you'll have the selloff, and we'll hear from a money manager who says the fed is making a huge mistake with its taper talk.

it could end up costing you a lot of money. plus, everyone says higher interest rates will be better on the financials. should you buy? we'll look at that. and don't miss maria's exclusive from house speaker john boehner, everyone from who he blames to selloff. after this. ♪ ♪ ♪

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dow down 289. disney, intel and hewlett-packard are the three worst performers in the dow. mandy, i think you have a stat? >> yeah, it looks like we're having the worst day for the dow since november 27, 2012. you might remember if you just go back a little bit in history, that was the day after the presidential election. we'll have to wait and see how we finish out. we were down by over 300 during our show. we still have an hour to go, though, folks, and change. let's look at what's happening with metals because as the u.s. dollar goes higher, metals are getting slaughtered. folks, take a look at this chart here. we have gold, silver, platinum all down to the very big

degrees, and this is a one-week chart here, guys, for gold. it's down about 17% in just one week. let's bring in frank holmes, ceo and cio of global investors. great to have you with us here, sir. we have brian here as well. frank, i want to ask you, to what degree do we keep on going down, or as schree kumar said earlier, he feels that these levels have dropped enough for him to start buying. >> yes. i think what's really interesting is this great market rally we've had this year, bank of america came out with statistics that say hedge funds missed it, and primarily hedge funds have been selling and retail have been buying. i think there is some value there. and these gold stocks are down to below book value, and these levels are like 2,008 and gold is still $3 an ounce higher. i think the big factors today is

what we call the deviation. movement in gold is 1.15% and it's down about six, so today it's a low-risk buy. for investors we've always advocated 5% in bouillon and 5% in gold stocks. >> i would imagine the big gold investors like john paulsen are really hurting today, and i think i saw that his gold fund was down over 50% today. what do you make of that and at what point does he say, geez, i guess i got it wrong? >> unfortunately, i hate to see anyone lose my money, but paulsen was down 140 million on the open. if he still has what he had in the last 13 at filing. my take is that gold is going to go to 1150, could go to 1100. what's going to happen after the close here today is that the gld started off the year with 1375

tons, okay? right now last night it was down to 999 tons. tonight it's going to be like, mandy, okay, do you want to buy gold tonight? someone is going to buy gold tonight because the to buy gold tonight? someone will buy gold tonight. it'll be the hot tomato in a big way. the correlation in all of this, right, has to do with the u.s. dollar. the u.s. dollar want to go to 8 the. that's why commodities are getting smoked. why the market is getting smoked. >> but, but, but, tom who is the dog and who is the tail, right? >> right. and this is -- let me tell you something, there is no doubt, okay, people are going to get a lesson beyond belief. i remember when the first etf came out, but in the nasdaq, when it crashed so bad, this is about the structures and not about emotional selling. selling has to get done to net asset values.

and talking huge commodity trade, physical commodities. and you know what he said to me, there is no rules in liquidation event. that's what this is. liquidation event. we good downtown and it is ugly right now but not as ugly as it will be. >> frank -- >> i'm sorry. good ahead. >> let's let frank respond. go ahead. >> i would like to add to what tom is saying. but it is not just the fear trade, it is the love trade. 40% of the world's population, known for china india, their one-month is below the three-month. that is having an impact on their gdp per capitia. their spending is so significant and every time we slow down their numbers, that that is an impact on gold command. it also impacts copper and other commodities. i believe it is temporary but that is what we are chewing through in addition to the dollar being strong. >> lots of factors at play.

keep watching what is happening with gold which right now is down by 6.7%. >> and dow jones is down three-hand. look at that, down 320 point right now to 14,793, folks. this is turning into one of the biggest sell-offs we have had in about a year's time. on deck, home builders getting whacked today. we will dig into those games. >> video proop proof that bears are out in full force today. stick around. what's the magic number for retiries to feel confident about leaving the work force? research asked 1,000 near and recent retirees with at least $100,000 in savings, how much would actually make them feel comfortable about retiring? the dollar amount revealed in just a sec. oh, he's a fighter alright.

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how much in savings does it take for those who just retired or about to retire no feel financially secure?

according to merit's research the tipping point is at least $500,000. retiries who hit that magic number view their retirement much more positively than those with less. be sure to check out retirement at cnbc.com for more great retirement tips. >> we want to show you what is happening with the market. the dow is down by 329 point. eighth straight day we have seen triple digit moves. certainly yesterday was significantly down by over 200 point. add on today's 329, you have a move of over 500 point to the down side on the back of ben bernanke's comment. bryan? >> best performing stock right now, the best, is cisco which is down. that the best performing. disney, worsed performer, down 3.5%. that the kind of day it's been. let's look at etf. it is below its 200-day moving average.

index tumbled nearly 15% since may. we are talking about the xhg. that's the dow. we are talking about -- there you go. philadelphia housing index. can you see that one of the worst performing sectors or sub groups, whatever you call it, mandy, in the market today. >> up next, bears clearly on the loose on wall street. just like this guy. stick around.

because the one question they never want to ask is "how did i end up here?" i started schwab for those people. people who want to take ownership of their investments, like they do in every other aspect of their lives.

take a look at this cuddly guy. kind of cute, right? but not like the bears taking over on wall street right now. we will leave you with this amazing video. a hunter climbing a tree. oh, look at that. up close and personal. >> kind of day it's been too. the big market sell off, we will see you tomorrow. >> welcome back, everybody. breaking news. fed-induced sell off continuing in a big way as we approach the final stretch. welcome to the "closing bell." >> the last time, and you see the dow down 2.3%. nasdaq is down 2 plus percent. s&p down even more. and the last time you had all three averages down more than it% on the same day was the day after the election last